50% off Encyclopedia of Information Science and Technology, Third Edition (10-Volumes)

This discipline-defining encyclopedia serves research needs in numerous fields that are affected by the rapid pace
and substantial impact of technological change and is a must have for every academic library collection.
Expires 12/31/2016.

Abstract

This paper presents a conceptual model of strategic choice for high-technology start-up firms in the face of network externalities—the strength of the market’s preference for standardized technology. Our model suggests that the commercialization strategies followed by such a firm will depend on the type of network externalitites—direct versus indirect—as well as the degree of appropriability—the firm’s ability to retain the value of innovation. We offer a number of propositions generated by the model and discuss their implications.